As per to the sources saying @ the www.propertykhazana.com, the foreign possession norms in the realty segment will be distorted by the Union Govt. by reducing at least locality needs for housing and commercial ventures which has foreign investment. Present foreign direct investment (FDI) rules have form the lowest locality for serviced residential plots with such abroad possession at about 30 acres and for construction development ventures a area of minimum 55,000 Sq.Mtrs roughly. As said by the policy note analyzed by Mint, Govt. is allowing the declination of the compulsory rules up to 15 acres and 15,000 Sq.Mtrs and the plan is still under negotiation stage. Seven years back, Govt. collected FDI rules in the realty segment by considering about 95-100% such investment in conglomerates and till now, only NRIs and persons of Indian source were permitted to invest in the segment.

As reported by the source at the www.propertykhazana.com foreign investors other than NRIs were permitted to invest only in development of integrated townships either through a totally possessed adjuvant or through a JV in India also with local associates till the decision. Later, 100% FDI was permitted under the supposed automatic way in townships, residential and construction development ventures. Many realty officers and professionals thought that the plan to decline the least locality for FDI, if it is permitted, will have an optimistic effect on the realty segment, but only in the long-term. Executive Director of Gurgaon based realty developer Vatika Group said to the www.propertykhazana.com that, “I don’t think so that it has a short-term effect on the segment as given to the present market conditions.”